MercoPress. South Atlantic News Agency
Salaries in Argentina averaged a 27.6% increase in the last twelve months
Strong unions and a booming economy, plus inflation helps to explain the percentage Salaries in Argentina averaged an increase of 27.6% in the last twelve months to June, boosted mainly by agreements in the private sector, reported Monday the country’s National Statistics Institute, Indec.
The total was reached following on June’s advance of 3.73% over May accumulating during the first quarter of 2011 an increase of 13.5%. The official Indec inflation in June was 0.7% so salaries surged over five times in the month.
According to Indec in June and compared to a year ago, salaries for registered workers increased 32.9%; for non registered workers, 30.2% and in the public sector, 18.6%. Comparing June with May the increases work out as follows: 4.31% for registered workers; 4.14% for non registered and 1.67% for government employees.
The Argentine government announced it is preparing to convene the Minimum vital wage council so that business organizations and unions discuss modifications to the current minimum which stands at the equivalent of 460 dollars per month.
The powerful organized labour organization, CGT is demanding a 40% increase to the equivalent of 650 dollars while the business and industry organizations want a hike in line with th 24% granted to government employees.
Official inflation in Argentina stands at 10/11% while private estimates indicate the figure is somewhere between 25 and 30%.
On the political side Argentina is holding presidential elections next October.
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Read all commentsWow that is fantastic for the Argentinian population an average wage increase 3x as much as inflation! Everyone must be feeling very rich and be able to buy whatever they want.
Aug 02nd, 2011 - 12:05 pm 0I do find it a bit odd that hoards of people are still picking through trash every night and the “middle” class can no longer buy beef for their family. Wonder why that is after 10 years of such great economic statistics? It is very strange, maybe every country should follow their heterodoxy? What are they doing right and every other country in the world is doing wrong? They are brilliant!
It is strange though that 10 BILLION U$ fled the country in the 1st 3 months of the year, very very strange, you would think if it was doing so well people would want to invest and grow along with the country's economy like Brazil. How odd?
Bahahahaha
10% is only the Kircher sponosred inflation numbers. Real one is expected between 20 and 30%. So it might be possible that people had a real decrease, even with 27% of nominal increase.
Aug 02nd, 2011 - 12:17 pm 0You know my post was a joke. I know that people don't strike, like they do everyday there, to protest a wage increase of 20% if inflation was really only 10%.
Aug 02nd, 2011 - 12:58 pm 0I am just pointing out the glaring dichotomies that the Argies don't want to admit or talk about.
All is well! All is well! Don't look behind the curtain!
What I don't get is this happened 12 years ago when BA was more expensive than NYC, then what happened, surprise surprise, CRASH!!, don't people there have any memories at all? Do they think it is going to be different this time ? How can a Big Mac be more expensive in a country who's people makes an avg annual wage of 1/3 of the USA? I will tell you why the economy is distorted and out of balance.
I am sure one of our posters can explain it, you know the Argentinians are brilliant economists, btw where is Axel? He is a teacher maybe he can give us a lesson in macro-economics. His last post to me was inflation doesn't matter because the gov't keeps raising their wages. I wonder if he still thinks that since the gov't isn't raising salaries enough to keep up with inflation. Oops I told him that would happen a year ago. Too bad he didn't believe me. I wonder what will happen when teh susidies run out after the elections? Maybe another helicopter escape for Casa Rosada? hahaha
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